European Central Bank Increases Key Interest Rates by 25 Basis Points

The European Central Bank's Governing Council has raised its three key interest rates by 25 basis points, marking its first hike since September 2023. This decision was made in response to persistent inflationary pressures, particularly those influenced by energy prices and the Middle East conflict. The ECB also adjusted its inflation forecasts upwards and economic growth projections downwards for the coming years.